Improvements in audio compression, watermarking/authentication software and streaming technology has enabled online music companies to sell recorded music directly via modem to the user’s desktop PC as digital data, not only cutting out the need for record distributors and retail outlets, but also for a physical music carrier (CD, cassette, MiniDisc, vinyl). This truly revolutionary way of distributing music, known as music-on-demand, is set to change both the nature of the music industry and the way we consume music.
The technology required to receive and store music-on-demand is an internet connection, a credit card and a recordable CD/CD-ROM, which are fast becoming affordable now they have been targeted to the home recording market. CD-Rs (CD Recorders) have now dropped in price to below US$300 and are continuing to drop, while blank media is currently selling in the US$2-4 range and are available in most computer shops as well increasingly in electronic retail outlets such as Dixons, Curry’s etc.
Just as internet-based ventures such as web radio and news services allow users to tailor services and broadcasts to suit their interests, so music-on-demand will allow music fans to create and manufacture their own, custom-made CD compilations. It is hoped that this will force the music industry to improve the quality of the music it makes available to the public, since many of today’s ‘traditional’ compilation albums so obviously contain several ‘fillers’ - ie tracks which are included to make money for the record companies by promoting future releases or recouping money lost on under-performing tracks, rather than included due to any artistic value (chart hits or themed tracks within a particular genre). Consumers will no longer be forced to buy 42-track compilations featuring 40 tracks of rubbish just to listen to two popular songs, when they can download the same two tracks from a music-on-demand distributor for a fraction of the price.
On the other hand, music-on-demand will allow retailers and record companies to cater for micro-markets - niche markets for whom releasing compilation CDs through traditional outlets is not commercially-viable. It is probably true to say that there is currently more unsigned and independent music available through most digital delivery companies on the internet, which may either reflect either the major labels’ reluctance to utilise this new form of distribution (this may be the case for any number of reasons, including audio piracy and a fear of new technology), or that the market for this form of digital distribution is highly targeted.
London-based Cerberus’ Digital Jukebox was the first system for buying audio (and legally paying copyright royalties) over the internet, and began trading in 1995. Its Virtual Record Store (VRS) currently carries "four and a half thousand examples of dance, hip hop, funk, club music, but there’s another thirty thousand of those to load on as well" [53].
Figure 21: Logo for Cerberus’ Virtual Music Store
(source : http://www.cdj.co.uk)
Cerberus’ VRS also features several remixes of certain tracks, songs from independent record labels and tracks by individual, unsigned bands, most of which are in the dance music genre.
Despite seeming highly targeted, the company caters for the music-buying public in general rather than those who want to stream music for storage and playback on their PCs, but the service is not restricted to those with internet access. Later in 1998, Cerberus intend supplying retail outlets and other public spaces (such as motorway rest stops) with kiosk versions of their VRS, where members of the public can create their own custom-made CDs in minutes, complete with printed sleeve artwork and artist/writer details. The kiosk system has already proved a success in branches of the Cyberia cybercafe and in Melbourne, Australia, and now other cybercafes have shown an interest in adopting the system. Cerberus figures for the last quarter of 1997 reported "Forty thousand downloads over three months, and it’s looking to double every six months" [54]. Ricky Adar is not alone in his belief that digital delivery of recorded music will soon take the music industry by storm - Jupiter Communications predict that online sales of music will reach US$1.3 billion by the year 2000 [55].
One of the current market leaders in digital delivery systems is Liquid Audio, formed in 1996, which lends its technology to allow online companies to promote their music-based services by supplying downloadable audio clips. Recent partnerships include Billboard Online, the 103-year old US-based music industry magazine, who now supply music clips with their album review archives which encompass tens of thousands of albums in all genres and spans as far back as 1948 [56], and musicmaker.com, a music store set up in early 1998 with over 5,000 rock tracks available for direct download [57], from classic rock’n’roll from artists such as Jerry Lee Lewis and Little Richard, to heavy rock from bands such as Biohazard. Each compilation CD can last up to 70 minutes and is compiled by the customer using the site’s searchable database. A jewel case insert is created for each CD, which contains the tracklisting and any message if the compilation is intended as a gift. CDs range in price from $9.95 to $19.95 depending on its length, is paid for using a secure credit card transaction and is shipped to the customer within two working days.
Liquid Audio’s main contribution to the online music industry is probably its own Indie 1000 Program [58], which allows independent labels and arists to preview up to fifty tracks and to sell up to fifteen songs either individually, or as an entire album, to fans by direct download. Music fans access the preview tracks either through the artist’s own web-site or through Liquid Audio’s Indie 1000 site, and are played back through a Liquid Player which can be downloaded free from the company’s site. Music can then be bought directly from the web-site through the player either as individual tracks buy clicking on Buy Download, or as a complete CD by clicking on Order CD (see diagram below).
As well as allowing music fans to choose their favourite music, music-on-demand systems such as Liquid Audio also offer music at a cheaper price than is paid at retail outlets - cheaper even than the prices paid at online CD retailers. US record company Twin/Tone Records have been in business for 21 years, own the recording rights of over a thousand artists, and have recently converted their back catalogue into digital audio for distribution over the Internet. The company’s MD Paul Stark predicts that the company will be able to sell single songs at $1.50 (approx. 90p) and an entire album for $10 (around £6). In American retail outlets, Twin/Tone CDs currently sell for $14-$16 [59].
Figure 22: Liquid Player user interface
(source : http://www.liquidaudio.com)
British-based independent label Ægean (co-founded by George Michael) also use Liquid Audio technology to make their music available to the online browser. Not only did the label preview the debut track by new artist Trigger on a world-wide basis from their site, using the publicity generated to draw media and public attention to the label and the band, but Andreas Giorgiou, the label’s MD, continues to support new bands and new technologies by being the first label to establish an online Artist and Repertoire (A&R) department for the purpose of accepting demonstration tapes from new bands on a world-wide scale via e-mail.